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Home My WebLink About1957-04-30; City Council; Minutesby tl-rc Auditing Committee. Seconded by Crnn. Robinson. All ayes, motion carried. Cmn. ~aird moved for adjournment to Tuesday, April 30th, at 7:'' Po 'I* Seconded by Cmn, Kelton. ~11 ayes, botion'carried, meeting adjourned at 10:30 Pa M* v 2Raspectfu y submitted, *&,&P W VERp1ILY274- Deputy City Clerk """"""""""""""""""._ rmwms OF ADXERNED MEETING OF CARLSBAC CITY COUNCIL April 30, 1957 - A Meeting callkd to order at 7:OO P. M. by Mayor Castorana. Present be- sidss the ?layor were Couhcilmen Xobinson, Ledgerwood, Helton and Baird; City Manager Nelson, City Attorney Smith, City Sngineer Kubota. Mr. Nelson read Resolution #259 of intention to amend contract with t.he State Employees' Retirement System to include miscellaneous employees of the City, and explained proposed changes and additions to the con- tract. Crnn". Robinson moved the adoption of Resolutj.011 #259. ' Seconded by Cmn. Iielton. Five ay+s, no nays, Resolution adopted. Nayor Castorens submitted for approval. of the Council the reappointments of Commissioners Arnie Stringer. and Clduc Fennel to the Planning Commis- sion for four-year terms. Cmn. Ledgerwood moved that. members Stringer and Fennel be reappointed to the Planning Conlmission for four-year terms expiring the second Tuesday in April, 1961. Seconded by Cmn. Helton. All ayes, motion carried. City Manager Nelson read a letter from the Carlsbad Mutual Water Company dated April 29, 1957, setting cut recommendations of the Citizens' Water Committee as follows: (1) that the contemplated purchase be financed solely by revenue bond issue; (2) that the City adopt necessary resolu- tions to assure priority of presently stocked lands to San Luis Rey water; and (3) that the City fix and armounce prior to the bond election the amount, of inclusion fee to be charged non-stocked lands upon connec- tion to Mutual facilities. Denny Wood of the Mutual Water Company reported that in a telephone: con- versation, Mr. Bberhard, attorney for the Mutual, stated he would pre- pare a written opinion covering the recommendations of the committee after due study. Mr. Tb'ood presented a map and pointed out the service area of the Mutual (extending approximately three miles inland from the Coast) . -He stated that not all .of the 2000 shares cf stock are assigned; that unstockecl areas include Hosp Grove and adjacent areas. Hq gave figures indicating that 55% of the shareholders (domestic users) are paying 80% of the water revenue, and the 45% irrigators pay only 20%. The Council discussed the three recommendations of the shareholders' committee separately. ' On the method of financing, the City Attorney stated that a general obligation bond could 6e used City-wide only if both t-hd Mut,uaI an6 Terramar Water Companies ,are purchased. * After con- siderable d&scussiom, it was agreed that the most feasible and economical- means of financing purchase of the Mutual Water Company would be through a ravenue-type bond issue, but that the Council should be guided by ex- pert opinion of bond 'counsel before committing the, City definitely on €his point, Cmn, Baird moved that the Council make a statement over the Mayor's signature, setting -forth the present intention of the Council to finance the purchase of the Mutual Water Company by submission to the voters of a revenue bond issue; that the exact type of financing be sub- ject to further 'study and opinions of recognized financial advisors'and bond counsel. Seconded by Crnn. Helton. Four ayes, no nays, Cmn. Robin- son abstaining, motion carried. In discussion of the proposed inclusion fee., Mr. Nelson proposed 'a. fig- ure of $212.00 par acre, computed on the basis of total value of Facili- ties less the amount offered, reminding the Council of the earlier dis- cmsions on the mattc.?r wherein it was stressed that the assessment of an inclusion fee was noC simply to collect money, but a device for equaliz- ing the financial burden of the shareholders. It was brought out that one effect of charging an inclusion fee will be to force the Municipal into the retail business, as owners of dry land to the east would possibly '2 .-i '3 :e 3 1." #4 21 choose to connect directly to the 'Municipal line if that procedure . should p.rove cheaper, in view of the assessment of an inclusion fee for connection to the Mutual Pacilities. The Council expressed concern that any substantial increase in water rates, which might be brought about if water revenues were not sufficienl to pay the interest and principal installments on the revenue, bonds, may result in discouraging and driving out.flower growers. In this con- nectkon Mr. Josaph Bray, 2200 Basswood, suggested the possibility of the -City having more water for sale than would be purchased. Gen. Rogers, director of the Municipal Water District, quoted figures indicating smal: 1ikelih.ood of supply exceeding demand, stating that :several water dis- tricts in thq County have already set up a system of priorities and ra- tioning programs in anticipation of a summer water shortage, After a 15-m.i.nute recess, the Council was reconvened at 9:30 P, M. The City Attorney pointed out that recommendations (2) and (3) were some- what tied in together, stating that upon payment of the inclusion fee, presently non-stocked lands would have paid full value, giving them full entitlement with present shareholders, who would then not be entitled to priority of San Luis Rey water. He commented that a reduced inclusion fee would allow retaining of priority of San Luis Key water to the origix a1 shareholders. After considerable discussiom, Cmn. Baird moved that the City will intsnc to levy an inclusion fee of $100.00 per acre, on such terms as may here- inafter be established by the Council, for .each .acre of the non-stocked lands within the Carlsbad Mutual service area and the City of Carlsbad that hereafter become attached to the existing facilities of the Carlsbw Mutual Water Company; and secondly, that the City Council intends that a1 of these inclusions as above outlined will have subordinate rights to the water rights of the presently stocked lands within the Carlsbad Mutual service ,area, as relates to San Luis Rey water; that the amount of the foregoing inclusion fee has been fixed in such amount so as to legally justify preservation of the water rights of presently stocked lands in the Mutual service area. Seconded by Cmn. Welton. Four ayes, no nays, Cmn. Robinson abstaining, motion carried. Mr. Nelson stated that the City Clerk 'has been approached as to the legal ity of City expelditures on the campaign to urge return of the signature cards, stating that thk cost is small, probably under $200.00, covering printing and postage. The City Attorney stated that Section #38730 of the Government =Code provides that a City is entitled to acquire a water works, and the p.o.wer to spend money to acquire it is inherent in the pro€ osition; that he felt the expenditure is unqualifiedly proper. The Council.re-examined the price o.ffered to the Carlsbad Mutual Water Company for its facilities and by common consent reaffirmed the offsr of $500,000.00. ' There was discussion re: annexation of a short stretch of abandoned road (the old Vista Way) lying northeasterly of the City boundary, to adjust the common'boundary with Oceanside at that point. Cm.n. Robinson moved, Cmn. Ledgerwood seconded, that the City Manager and City Engineer be authorized to prepare a map and description on the parcel indicate, and submit same to the County. Boundary Commission. All ayes, motion carried. Cmn. Robinson moved for adjouEnment, seconded by Cmn. Helton. All ayes, meeting adjourned at loco7 P. M. " #Zd7Je. ,spec fu gz-s -"J NATALIE VERMILYEA V Deputy City Clerk """"""I""""-""""-""" MINUTES OF REGULAR MEETINGOOF CARLSBAD CITY COUNCIL May 7, 1957 Meeting called to order at 7~05 P. M. by Mayor Gastorena. Present be- sides the Mayor were Councilmen Helton, Robinson, Baird, Ledgarwood; City Manager Nelson, City Attorney Smith, City Engineer Kubota. CEn. Helton moved approval of -minutas of the meeting of April 16th as written. Seconded by Cmn. Robinson. All ayes, motion carried. I